In the past period, some of the companies and investment institutions in the Gulf have moved to real estate investing in America by buying a real estate portfolio According to weetas.com.
Bahrain-based Investcorp has acquired a real estate portfolio of 8 properties in a number of areas in the US, including Las Vegas, Denver, Chicago, Atlanta and Dallas. The deal was worth about $ 400 million. The deal, valued at $ 1 billion last year, was bought by Investcorp last year.
The eight properties are chartered and recorded a high turnout and are located in active locations so the bank is keen to acquire to benefit from its rental and investment returns as well.
Investcorp's US $ 1.4 billion real estate assets are located in the most active real estate markets in the United States.
JFH Capital, a subsidiary of GFH Financial Group in Bahrain, has joined the real estate investment in America by acquiring a real estate portfolio of 18 industrial properties across six regions of the United States.
98% of the portfolio's properties are leased, and the portfolio is expected to generate a cash yield of between 8 and 10 percent.
The US real estate market.
The United States is also called sub-continent. The vast area and natural resources of many of the central cities, which is full of economic movement and a vibrant life in the real estate market.
There are many cities that receive a lot of real estate investment in America, especially from the Arabian Gulf, such as New York, one of the world's top cities attracting foreign investment, Atlanta, which has a strong construction and construction and property prices reasonable, in addition to the city of Miami, The tourist towns located on the east coast and growing by the real estate market are stunning shape. The price of a Miami apartment ranges from $ 275,000 to $ 900,000.
The investment yield in Miami ranges between 8 and 12 percent
Real estate investment returns in America vary from state to state and from city to city, but on average they range between 8% and 12% per annum, which is good.
Gulf investments in the US real estate market are estimated at about $ 5 billion a year. Gulf real estate companies operating in the United States sell 50,000 units a year.
Why Real Estate Investing in America?
What is so distinctive about real estate investing in America? Why are many investors, whether Arab or Gulf, in particular turning their money to real estate markets there?
Two key factors are the US real estate market, which is the key to the success of any investment of any kind - return and stability. As mentioned above, the market provides high investment and rental returns. The country enjoys high level of security and political stability as well as relative economic stability compared to many other markets around the world.
There are also many side factors such as the increase in the number of Arab tourists to some American cities, especially those with a large presence of Arab communities such as the city of "Detroit". Visits go either for hiking, work, shopping or studying.
Another factor that stimulates and encourages real estate investment in the US is the presence of a large number of Gulf students there, which encourages investors to buy and rent properties in areas where the student center may provide an average annual return of between 5% and 10%.
In addition to the decline in prices compared to other markets, especially after the global financial crisis, which greatly affected the real estate market, especially in the United States. However, the market has recovered much of its activity now and is currently returning to its old levels.